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Abstract
From 1950 to 1965, Indonesia followed an import substitution
industrialization development strategy .. From 1966 to the present, Indonesia
has moved toward an export oriented development strategy. This paper tests
the predictions of the Heckscher-Ohlin-Samuelson (HOS) model of international
trade by comparing Indonesia's economic performance under two contrasting
development strategies.
The paper concludes that Indonesia's economic performance under the
opposing development strategies supports the predictions of the HOS model.
Furthermore, the Indonesian experience under the two development strategies
supports the "trade as an engine of growth" hypothesis.